Pakistan, Russia to set up new steel mill in Karachi

The government is considering a proposal for establishing a new steel mill in Karachi with the cooperation of Russia and both countries have agreed to form working groups to push ahead with the project.

In that regard, Russian Federation Deputy Minister of Industry and Trade Aleksei Gruzdev met Minister for Industries, Production and National Food Security Rana Tanveer Hussain on Wednesday.

Pakistan's minister informed his counterpart that the government had earmarked 700 acres of land of Pakistan Steel Mills (PSM) for setting up the new steel mill.

He said that despite being blessed with considerable reserves of iron ore, estimated at 1,887 million tons, Pakistan was forced to import around $2.7 billion worth of iron and steel.

"There is a perpetual gap between the domestic production and demand for iron and steel. Last year, the gap was estimated at 3.1 million tons," he added.

Pakistan's per capita steel consumption stands below even the developing countries, indicating a significant growth potential over the medium and long term.

Rana Tanveer Hussain said that the efficiency of Pakistan's steel industry was limited as it remained segmented, with 600 small units, and was based on old and inefficient technology.

The proposed site for the new steel mill is located in Karachi and close to Port Qasim, which will reduce the cost of raw material transportation.

Pakistan's industrial and agricultural experts are set to visit Russia, marking a significant step in strengthening bilateral ties.

During the meeting, they emphasised the need for balancing trade between the two countries. Rana Tanveer Hussain called for utilising modern agricultural machinery to boost crop yields and enhance farm production.

He gave assurances that Pakistan's government would provide all facilities to the prospective Russian investors.

Russian Minister Aleksei Gruzdev stressed that his country would provide modern agricultural machinery to Pakistan to help enhance crop yields and farm output.

Russian Federation Deputy Trade Representative in Pakistan Denis Nevzorov, Industries and Production Secretary Saif Anjum, National Food Security and Research Secretary Ali Tahir, National Food Security Additional Secretary Amir Mohyudin, Industries and Production deputy chief Abdul Samad and PSM Executive Engineer Muhammad Shoaib were also present in the meeting.